Canadian Automotive Industry Is Blooming Rapidly

The Canadian automotive industry has been blooming at a very high pace. The terms and conditions that have been laid by the financial institutions have helped a lot in the blooming of the industry. This has propelled the car sales to a new level in the last year. The use of latest technology has also been a deciding factor.

Comparison of previous years:

The last year recorded 1.74 million units of cars sold. There was a 4% rise in the sales compared to 2012 and a 10% rise compared to 2011. Based on the previous years the industry analysts think that this year the sales could be high as well. Preliminary reports show positive signs.

The analysts have said “as long as the producers have something new to offer to the people, they will keep buying cars”. The more new technology has attracted people over the years and the same thing is bound to happen again. People love new cars and new models.

Technical factors:

Technology used in the present day automotive industry is amongst the best. Not just that. The technology is new and is provided to the people at very affordable prices. Price is a very important deciding factor on behalf of the customers. Unless the customer is convinced that he will get value for his money, he will not buy the product.

The fuel efficiency of the modern day cars have been increased to a better level. There are many factors that have combined together to give a boost to the Canadian automotive industry. The growth of the industry is likely to slow down this year compared to the previous two years.

Financial factors:

The analysts have also said “it is expected that the sale of cars may fall from 1.74 million units to 1.71 million units in 2014. However this not a matter of concern for the manufacturers as there are other factors influencing the sale of cars. The continuous investments from outside in the industry will keep the industry floating even in tough times.

One of the major reasons for the success of the automotive industry has been the reduction of loans. The rate of interest against car loans have been reduced considerable. This is a favorable condition that helps in the blooming of the industry. It has been seen that compared to the 35% other loans there have been 165% car loans taken in recent times.